changes in the study
In response to the energy squeeze, the government is considering how to shape fuel support as conditions shift. The 20-cent-per-liter reduction, launched on April 1, is under review, with the aim of avoiding broad, unfocused subsidies that may not align with evolving economic realities. The universal discounts for all drivers are set to end on December 31, and a range of options is being evaluated to replace the indiscriminate cut with targeted measures that shield the sectors most affected by higher energy costs.
Officials anticipate making a substantive decision by year’s end, and there is ongoing analysis of how fuel prices will move in the coming weeks and what that means for next year. After a stretch of declines from prior peaks, both petrol and diesel prices have eased from last July’s highs of more than 2.10 euros per liter.
The government is exploring continued implementation of several relief measures designed to cushion households and businesses from the energy crisis into early next year or through 2023. However, the fate of the 20-cent discount remains uncertain. Nadia Calviño, Vice President and Minister of Economic Affairs, signaled in an interview with a national broadcaster that continuing the 20-cent cut from January 1 would carry significant financial costs and would need careful justification.
Public accounts currently fund the discount for all drivers, including individuals and commercial customers, with the exception of major oil companies where the state shoulders 15 of the 20 cents. The official estimate for the first three months of the program suggested a larger impact on the public treasury, and authorities later revised expectations accordingly.
Calviño highlighted that the advisability of keeping or revising the general fuel discount is being assessed alongside plans to protect professionals in economic sectors where fuel prices impose a heavier burden. The question remains whether sector-specific measures should be introduced, and whether the discount should persist for the entire population or be targeted to the groups most affected.
Whenever renewal decisions loom, the government reserves the option to remove or adjust the discount if it is deemed ineffective. The administration also left open the possibility of expanding support for drivers, potentially transforming a broad rebate into a system that distributes relief based on consumer income if energy costs stay high and fuel prices remain elevated.
The general 20-cent-per-liter discount has faced criticism for being regressive, offering the same benefit to all users regardless of income or driving intensity. Critics argue that higher-income households with greater vehicle use reap more advantage because the policy is universal. Nonetheless, several ministries have argued that rapid deployment is essential during a price crisis, and a universal approach may be the fastest means to provide immediate relief while longer-term, more targeted measures are developed. The debate continues as officials weigh the trade-offs between speed, equity, and fiscal discipline. [citation]